Former Federal Reserve Governor Adriana Kugler resigned in August after violating Fed ethics rules, documents released Saturday showed. She had sought a waiver to address her financial holdings before a July policy meeting, but Chair Jerome Powell denied the request. Kugler missed the meeting and resigned days later.
Her latest financial disclosures revealed previously undisclosed stock trades in 2024, some during the Fed’s blackout periods. These included shares in Materialise NV, Southwest Airlines, Cava Group, Apple, and Caterpillar. The Office of Government Ethics referred the matter to the Fed’s inspector general, and an investigation is ongoing.
Kugler’s resignation allowed President Donald Trump to fill her board seat earlier than expected. The position ultimately went to Trump adviser Stephen Miran, who has called for rapid interest rate cuts. Kugler, appointed by President Joe Biden in September 2023, declined to comment.
This was not Kugler’s first ethics issue. Previous disclosures showed her husband had executed stock trades without her knowledge, which she later divested. The 2024 trades again raised concerns about compliance with Fed rules for officials and their immediate family members.
The scandal has drawn criticism from lawmakers. Senator Elizabeth Warren called for stricter Fed ethics rules, while Senate Banking Committee Chair Tim Scott said the next Fed Chair must restore integrity and transparency.
